1 / 13

Political control of state and municipality owned firms

Political control of state and municipality owned firms. Policy research seminar Ji ří Skuhrovec, 27.3.2014. SOEs - Definition. That is joint stock , limited, national and state companies (a.s., s.r.o., s.p ., n.p .), where public bodies own more than 50%.

kateb
Télécharger la présentation

Political control of state and municipality owned firms

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Political control of state and municipality owned firms Policyresearchseminar Jiří Skuhrovec, 27.3.2014

  2. SOEs - Definition • Thatis joint stock, limited, national and statecompanies (a.s., s.r.o., s.p., n.p.), where public bodiesown more than 50%. • Itis quasi-public (foundedmostlyaccording to corporatelaw) • Largest: ČEZ (and daughters), České dráhy (and daughters), Česká pošta, Budvar, Dopravní podnik Praha, Lesy ČR, Český aeroholding..

  3. SOEs in Czech republic - status • GDP share – I challengeyou to findout • Companieswithturnover > 1 mil. CZK count: 1096 and growing • Overal turnover 680 bln. CZK • 83% owned by state, rest ismunicipalities • Minor companies – hospitals, asset management etc.

  4. SOEs in Czech republic – dynamics. Why?

  5. SOEsgrowth – Economicrationale (?) • Nonewhatsoever. Statedoing business implies • Principal agent problems • Corruptionrisks • Soft budget constraint ( see Česká pošta, České dráhy, varioushospitals… ) • Privatizationleftovers? Not really… • Non economicrationale • strategicinterests (ČEZ .. Ok. Budvar .. Come on ) • Politicalincentives • Othersuggestions?

  6. OECD guidelines • OECD: Ifyou NEED to haveSOEs, theyshouldbemanagedindependently on politicians • Two-layergovernancestructure • Supervisoryboardischosenof independent experts to preventconflictofinterestissues and political abuse ofSOE‘s. • Maximum transparency to minimize risk ofmisconduct

  7. Study – turnoverofsupervisoryboards • Hypothesis – apoliticallymanagedfirmsshouldhaveorganizationalchangesrandomlydistributed in time • Method: • Drawinggraphs (thisishowpolicyrelevantarguments are done :-/ ) • Hypothesistesting … no need to. Youwillsee • But wewill do themafterall.

  8. Turnoverofsupervisoryboards (cities)

  9. Turnoverofsupervisoryboards (regions)

  10. Results • Hypothesisrejected – regions, municipal • Statecompanies – methodologyunapplicable. 10 govtsover past 14 years… Researchquestions: • Whythepoliticalcontrol? • How to documentpoliticalinfulence on firmsmanaged by centralgovernment? (case by case examination?) • How to demonstrate shift of agenda to theSOE’s? (expendituressturcture?)

  11. TransparencyevasionthroughSOEs? • Youdontneed to procureif: • You are a business withindustrialorcommercialnature • You are network industry (sometimes) • Youdontneed to answer 106 questionsif • Youhavegoodlawyers • Politicalopponentsdontseewhatyou do if • You are not stupidenough to putthemintotheboard How to documentthis?

  12. Brightfuture? • New govt. appointscouncilforboardnominations • Yet, these are mid-level ministry officialswith no experiencewith business, subordinate

  13. Thanksforattention

More Related